Royalties are payments made to creators or owners of intellectual property, such as music, books, or inventions, for the use of their work. When someone uses a protected creation, they typically pay a percentage of the revenue generated or a fixed fee to the original creator. This system helps ensure that artists and inventors are compensated for their contributions. For example, when a song by Taylor Swift is played on the radio or streamed online, the music label pays Swift royalties based on the number of times her song is played. This allows creators to earn income while their work is enjoyed by others.